Swader Kennel Uses Tenant-Days as Its Measure of Activity; an Animal

question 87

Multiple Choice

Swader Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During March, the kennel budgeted for 2,900 tenant-days, but its actual level of activity was 2,930 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for March:
-The facility expenses in the flexible budget for March would be closest to:

• A) $20,700
• B) $20,369
• C) $20,793
• D) $20,820

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Definitions:

Amortized

The gradual reduction of a debt or the cost of an intangible asset over a specific period, typically through regular payments or writedowns.

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The entitlement of shareholders to vote on corporate matters, such as the election of the board of directors, at shareholder meetings.

Business Combination

The process of merging two or more companies into one entity, usually to expand market share or diversify risk.

Hostile Takeover

An acquisition attempt by a company or investor group to obtain control of a target company against the wishes of its management and board of directors.